Actually this paper is very interesting. So they did in fact reward employers for employee performance.
What I found the most interesting:
If, instead, we were to impose a random choice on employers, their earnings would drop by
11.4%, because employers do gain some relevant information from the appearance of the candidates, and this information allows them to make better-than-random choices (as can be seen in Fig. 1, which shows that employers in this condition choose the higher-performing candidate 55% of the time).
If we remove the anti-women bias in expectations [in the case of appearance only], employers would earn only 0.1% more in compensation.
So it turns out that anti-female bias is almost negligible when basing decisions entirely on candidate appearance. That's really surprising to me. I wish they included a table describing how much alpha could be gained by eliminating anti-female bias in all cases.
Also, it looks like the best (and least biased) predictor was Past Performance. Surprise surprise. Maybe people will now stop complaining about employers who ask for a github (aka "Past Performance") instead of a resume ("aka "Cheap Talk")?
What I found the most interesting:
If, instead, we were to impose a random choice on employers, their earnings would drop by 11.4%, because employers do gain some relevant information from the appearance of the candidates, and this information allows them to make better-than-random choices (as can be seen in Fig. 1, which shows that employers in this condition choose the higher-performing candidate 55% of the time).
If we remove the anti-women bias in expectations [in the case of appearance only], employers would earn only 0.1% more in compensation.
So it turns out that anti-female bias is almost negligible when basing decisions entirely on candidate appearance. That's really surprising to me. I wish they included a table describing how much alpha could be gained by eliminating anti-female bias in all cases.
Also, it looks like the best (and least biased) predictor was Past Performance. Surprise surprise. Maybe people will now stop complaining about employers who ask for a github (aka "Past Performance") instead of a resume ("aka "Cheap Talk")?